Will this do?
http://www.lesjones.com/www/images/p...se-pyramid.jpg
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Will this do?
http://www.lesjones.com/www/images/p...se-pyramid.jpg
That's hawt :)
Credit is not money at all, it is simply book keeping entries that banks have finagled into a currency or, medium of exchange.
FRNs are legal tender money, a unit of account and the basis of all credit/debt issued.
FRNs are born as debt but they can also be held independant of debt, credit can not.
That inverted pyramid is wrong in that gold was made irrelevant to the equation in 1933.
It all rests on the FRN now.
Interesting question. Whose estate is being held in trust?
Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
This accounts for the FRN's limited supply and it also discounts any notions of hyperinflation.
This is exactly what money of account is: bookkeeping entries in a ledger.
The depositing of one's money into a bank transitions it from money of exchange (FRNs) to money of account (checkbook, ledger, or account entries).
Gold coin, silver coin, and copper coins are lawful moneyQuote:
Originally Posted by Carl
Gold coin, silver coin, copper coins, US Treasury Notes, and US Treasury Bills are lawful tender.
An FRN is a note. It is based on dollars. A dollar is a specified weight and grain of silver and per the Coinage Act of 1792.
Sorry but no. The unit of account remains the money (FRNs); bookkeeping merely tracks the flow of that unit of account.
By the way, there is no money in any bank account of any type anywhere within the U.S., they are all credited accounts.
U.S. law and the government's ability to impose its will through the use of force has determined that gold and silver coin are not money, regardless of your sentiments on the subject.Quote:
Originally Posted by shikamaru
The coinage act of 1792 was made irrelevant immaterial and beside the point by the Coinage Act of 1965.Quote:
Originally Posted by shikamaru
While the FRN may resemble the USD, the USD is not the basis of the FRN. The FRN is a private issue currency.
** I stand corrected: If FRNs can be Redeemed for Dollars then that would indicate that Dollars are the basis of FRNs. However, silver plays no part in it.
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Like this?
I recall having $4K on a Line of Credit. I told the Credit Union to remove my SSN from the Account as I did not have one any longer. They closed the account. A couple months later they called my Dad and asked him for my SSN - he declined.